CRANFORD, NJ--November 4, 1996--Cali Realty Corporation (NYSE:CLI) today announced that the Company has completed the acquisition of Harborside Financial Center, a 1.9 million square foot office complex, located in Jersey City, New Jersey. The purchase of this property, which is located on the Hudson River waterfront across from downtown Manhattan, has increased Cali's total portfolio by approximately 40% to 6.4 million square feet. As part of the purchase, Cali also acquired 11.3 acres of land fully zoned and permitted for an additional 4.1 million square feet of development.

Commenting on the closing, Barry Lefkowitz, the Company's Chief Financial Officer said, "The transaction is accretive to earnings, provides the Company with solid long-term financing and increases Cali's market share of Class A office space to 40% in one of New Jersey's best markets."

THE PROPERTY

Harborside Financial Center, located adjacent to the Exchange Place Port Authority Trans-Hudson ("PATH") train station, is a completely redeveloped, three-building office complex containing approximately 1.9 million square feet of office and retail space. The three buildings are connected via an enclosed waterfront promenade with over 50,000 square feet of restaurants, retail shops, a food court, and an atrium which provides space for tenant-related social functions.

THE FINANCING

Financing for the Harborside acquisition was realized in part through the assumption of existing and seller-provided financing aggregating $150 million, with nine-year terms. In addition, Cali has also obtained an $80 million revolving credit facility from Prudential Securities Credit Corp. which bears interest at a rate of LIBOR plus 125 basis points. The Company has drawn the full $80 million from this credit facility to fund the acquisition. The balance of the acquisition cost was drawn from the Company's existing credit facilities.

THE MARKET

The property, which is currently 97% leased, is located in the Exchange Place sub-market of Jersey City. Encompassing approximately 6.4 million square feet of Class A office space, the sub-market's vacancy rate was approximately 5% at September 30, 1996. Absorption has been strong during the last eight years, with 5.8 million square feet of total positive absorption or an average of more than 700,000 square feet per year.

ABOUT THE COMPANY

With the completion of the Harborside acquisition, Cali's portfolio totals 6.4 million square feet, compared with 3.9 million square feet at the end of 1995 and 2.2 million square feet at the time of the Company's IPO in August 1994. The Company has acquired approximately $500 million of properties and has more than tripled its total market capitalization since the IPO.

The acquisitions have been financed by the Company's credit facilities, assumption of existing indebtedness, and the successful completion of two common stock offerings in October 1995 and August 1996. Cali's third quarter 1996 earnings showed a 14% increase in funds from operations per share over the same period in 1995. The Company currently pays an annual cash dividend of $1.80 per share, which at Friday's closing stock price of $ 26.875 represents a 6.7% yield. Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. The Company owns 48 properties, primarily Class A office and office/flex buildings, totaling approximately 6.4 million square feet. All of the properties are located in New Jersey, New York and Pennsylvania.